Cancer risk testing lifts turnover By Rebecca Urban August 2, 2004
A push into the field of cancer susceptibility testing is paying off for Melbourne-based Genetic Technologies, which has started picking up business from over-burdened state laboratories. Two years ago, when the company's genetic testing division was limited to paternity testing, revenue failed to go beyond $1 million a year. Last financial year, the division turned over $3.5 million and directors are confident earnings will continue to grow. As demand grows for cancer susceptibility tests, state-run familial cancer centres across Australia are increasingly turning to the private laboratory to help relieve backlogs of testing work. In the worst-affected areas, public patients are waiting up to two years to find out whether they carry defective genes that could potentially lead to cancer. While director Deon Venter is reluctant to name the organisations that are providing work, he said the company was talking to health departments in most states about accessing the company's technology: "Some discussions are further along than others," he said. The problem with cancer susceptibility testing, Professor Venter said, was that locating a gene was expensive, complicated and time consuming. He said Genetic Technologies used robotic technology to carry out tests and, through its membership with an international network of 30 laboratories, it was able to screen for more than 500 genetic disorders, whereas state laboratories lacked both the resources and expertise. "You need substantial spending upfront on technology . . . an investment of millions and most state health departments don't have that money," Professor Venter said. "We now have the economy of scale to provide the service. We are running it as a business and probably doing it at 40 per cent of the real cost to the state system. But we're still making money, because we have to for our shareholders." Genetic Technologies charges between $700 and $2300 to test cancer susceptible genes and usually produces results in 15 to 90 days. The company continues to carry out paternity testing and has an active plant and animal testing division. It was recently invited to help Asian countries set up similar state-of-the-art laboratories. Extra revenue has also been coming from state forensic laboratories, which are under similar constraints to the health system. Professor Venter expects to pick up more work across all testing divisions, particularly in the area of cancer susceptibility. At least three private genetic health centres have opened in Australia this year. "Driving growth is an increasing knowledge among people involved in patient care, oncologists and surgeons, that identifying a susceptibility to cancer impacts on their management of the risk," he said. "If you know someone carries a mutation you know their risk of getting cancer has gone up and therefore you can increase surveillance." Professor Venter said many people spent more money on a television than they would pay for genetic testing. Genetic Technologies shares fell 0.5¢ last Friday to close at 33¢.
GTG Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
(20min delay)